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Need Help with Basic Questions


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Guest TGinthe'Ville
Posted

If you could help or let me know where to get the following information, I would be much obliged.

1. Our cafeteria plan has two checking accounts, one for the medical reimbursement and one for the health insurance. What happens to this money IF we terminate the plan? Does it become taxable?

2. Do we need to file a 5500? We have 85 participants. I think we do, in as much as it is a "funded" plan.

3. We have a "reserve account" on the company books, for deferrals not yet transmitted to the plan accounts. Is there a limit on what we can have in this account?

Thank you!

Guest TGinthe'Ville
Posted

Lots of "views", but no replies... :(

Can anyone help? Should I get with our insurance company..?

Guest chloe
Posted

I don't believe the insurer can help. You really need to talk to your own tax advisor.

Guest b2kates
Posted

I am not sure your plan is funded.

who is the title owner to the checking accounts?

are they the company's and used similar to a payroll account.

Generally, there is no limit on reserve accounts on the books of the company.

If you would like more detailed discussion off line, feel free to drop me a note.

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